Worldwide Adoption of IFRS

In 2014, a study from PricewaterhouseCoopers pointed that American investors are looking over-seas’ capital market for investment opportunities, and foreign investors are also looking for investing opportunities in America. According to the research from PricewaterhouseCoopers in 2014, an estimates shows that there are around seven trillion US dollars are invested in foreign stock markets, and American markets are open to non-US firms too. Many of the foreign companies use IFRS rule without any reconciliation to GAAP.

Before deciding to fully adopt IFRSS, in 1996, the AASB issued Policy Statement 6 International Harmonization Policy with objective to ‘pursue the

As consultants for Ancher Public Trading (APT), Learning Team A would like to discuss the implications of the Sarbanes-Oxley (SOX) legislation. This memorandum provides a brief history of SOX¡¦s creation, explains the relationship amongst the FASB, SEC and PCAOB, describes the pros and cons of SOX, assesses the impacts of SOX, and lists ethical considerations of SOX.

The introduction chapter of this paper presents next the research questions, the methods of the research and then an overview of Deloitte. The second chapter is concentrated on the Sarbanes-Oxley Act evolution, composition and theoretical framework. The third chapter presents the empirical research process and finally, the fourth chapter contains the results of the research and provides the analysis of the selected data.

It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organization trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations.

The first problem derive from the flexibility that the IOSCO disclosure standards unequivocally grant to the securities regulators of the host country in a cross-border share offering. These standards cogitate that the core disclosure document will undertake "a minimum of tailoring to fit national requirements. (68) But the extent of national tailoring allowed under those standards could be extensive. The IOSCO standards specifically recognized that additional disclosure by foreign issuers will sometimes be essential in certain host countries because of local custom

The only way to build a great global company is with a single global standard of business practices, vigorously communicated and rigorously enforced. Companies must layout the same business standards in Chicago, Paris, and Shanghai as in London.

This document is authorized for use only by Yen Ting Chen in FInancial Markets and Institutions taught by Nawal Ahmed Boston University from September 2014 to December 2014.

Distinct benefits exist in convergence of GAAP in different jurisdictions. Comparability between companies that operate in, or are listed in, different countries, will be significantly improved. Greater comparability leads to better information for investors, more efficient capital

According to Bostelman, J. T. (2004), not all of the Sarbanes-Oxley provisions are controversial for foreign issuers. Provisions consistent with foreign regulation and which do not entail additional burdens on

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Another disadvantage of a company listing its shares on a stock market in a different country is the idea that electronic trading is making it easy for investors to have access to foreign companies. In the past companies that cross listed would have access to foreign investors and consumers but as electronic trading continues to increase consumers and investors are now able to buy shares to more foreign companies.

According to Hutton (1995), the financial systems in the UK and US are stock market oriented, which require high returns relatively. The major organizations are controlled by stock-holders in the US. These financial institutions operate their business while trading shares in an intense competitive stock market, which makes them to adjust and react quickly to changing market conditions. Hence such unstable investment environment forces all the companies take the risk of being merged or taken over by rivals as long as they occupy their shares largely on the stock

The past few decades have witnessed the increased internationalization of various firms through cross- listings on international exchanges. This has been facilitated by market liberalisation, which has led to greater integration of global securities markets. Cross-border listing has become one of the avenues for the integration of global securities markets.